Research Update: Mallinckrodt PLC Upgraded To 'B-' Rating Following Emergence From Bankruptcy; Outlook Stable

Mallinckrodt PLC, a specialty pharmaceutical company, has emerged from bankruptcy following completion of the examinership proceedings in Ireland, where the company is headquartered. The company issued $650 million in new first-lien secured notes, which it used along with about $250 million of balance sheet cash to repay the $900 million prepetition revolving credit facility. We upgraded our issuer credit rating to 'B-' from 'D' to Mallinckrodt plc with a stable outlook. This reflects the company's high product concentration, our expectation for continued revenue declines in 2022 and 2023 from significant pricing and competitive pressures, and our expectation that adjusted debt to EBITDA will be at least 7x over the next couple of years. We assigned ratings to its debt outstanding,

...- Mallinckrodt PLC, a specialty pharmaceutical company, has emerged from bankruptcy following completion of the examinership proceedings in Ireland, where the company is headquartered. - The company issued $650 million in new first-lien secured notes, which it used along with about $250 million of balance sheet cash to repay the $900 million prepetition revolving credit facility. - We upgraded our issuer credit rating to 'B-' from 'D' to Mallinckrodt plc with a stable outlook. This reflects the company's high product concentration, our expectation for continued revenue declines in 2022 and 2023 from significant pricing and competitive pressures, and our expectation that adjusted debt to EBITDA will be at least 7x over the next couple of years. - We assigned ratings to its debt outstanding, including our 'B' rating to the company's $1.76 billion first-lien term loan B and $495 million first-lien secured notes. We also assigned our '###' rating to its $698 million second-lien secured notes....

Research Update